Most people have an idea of how having bad credit can impact upon your life – you could find it very difficult to get future credit, and this could result in the inability to get a home, a car, or even finance in shops. However, what some people don’t realize is that having no credit puts you in exactly the same situation. Many lenders refuse those with bad credit because they are a bad risk based on the data in their credit reports. However, if you have no credit there will be no data on your credit report for the lenders to evaluate, and therefore you will still be classed as a potentially bad risk because there is nothing there to indicate otherwise.

This is why it is vital that people start to build their credit as soon as possible – so that they can look forward to financial stability and enjoying the luxuries and conveniences in life such as a home, vehicle, even a credit card. But this can often turn into a catch 22 situation, where the questions arises: if a lender will not give you credit because you have never had credit before, then how do you ever build up a credit rating?

Well, thankfully, lenders have realized the problem that this situation posed, and you can now benefit from a range of financial solutions designed to suit those with no credit data on their credit reports. Even if you only opt for a credit card with a low level of credit, this will get start the ball rolling and will enable you to start building that all important credit. By doing this, you can look forward to far better credit deals in the future, and far more in terms of convenience and affordability.

It is impractical these days to assume that people can get through life without needing credit. Unless you have a magical money tree growing in your garden, the likelihood is that at some point you are going to need credit, but unless you take action early on you may find that when the time comes and you need a loan, a credit card, or a mortgage, you may not be able to get one.